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Soft Drink Industry Analysis - Essay Example

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Soft Drink Industry Analysis

The important factors which we need to consider are rival competitors, threats to the present players from the new entrants and finally the suppliers and consumers in general as a whole market share competition. The reason we are considering Industry analysis for the soft drink industry is that we can understand the overall landscape of the industry and thus can identify the growing trends, opportunities and possible threats. Whenever we consider the industry, one thing to be noted is that supplier and buyer are powerful entities in the whole process schema. Now that we have realized the need and importance of industry analysis in any industry, let's go further by listing the main features to be included while reasoning the industry analysis. The first step in industry analysis is to define the industry or the sector which will be analyzed. In our case this will be soft drink industry or we can say the market of non alcoholic beverages. The second step in the process is to identify the key players and competitors in the market and also identify the customer target base. After identifying the players we need to judge the strengths, weakness and other factors. We also need to understand and identify the market trends in the industry. The main purpose of industry analysis is to identify the threats and counter them so as to improve the whole structure of the industry
External Analysis

This is done by using the more successful analysis procedures of SWOT and PEST

It is also to be noted that Soft drink industry is affected socio-economic environmental factors firstly the concept of globalization. With the growing use of the internet and other electronic technologies, global communication is rapidly increasing. This is allowing firms to collaborate within the country market and expand into world markets. It has driven competition greatly as companies strive to be first-movers. The second change factor is innovation. In today's globalizing society, being ordinary or plain is not good enough. Differentiation from other rivals has become a norm to make a niche in the market.
Thus these all analysis gives us a broader outlook of the whole industry and gives us a perspective of the how the industry is shaping up. We conclude by list out the SWOT and PESTLE Analysis of the whole industry.
SWOT Analysis
Strengths
1. Competitive Industry among the beverage section
2. Spread around the globe- market share
3. Global Brand of the players
Weakness
1. Too many big players.
2. Difficult for small players to make an impact
3. Emergence of Substitute product
Opportunities
1. Emerging markets
2. Innovation in products
3. Globalization .Better chances to increase customers
Threats
1. Substitute products
2. Alcoholic beverages
3. Stagnant economy in big economic sections
PEST
Political
1. Stable Political Situation in big share places
2. Administration showing importance to business value
Economic
1. Stable and emerging economies in countries like Europe and Asia
2. Large number of Buyers available in countries
3. Prominent presence of giants in economic areas
Social
1. Brand value among consumers
2. Competitive industry among all others
3. Maximum in Europe and emerging in Asia
Technological
1. Product innovation using technology
2. Usage of modern techniques to produce better quality drinks

Internal Analysis (including ...Show more

Summary

For every industry analysis, to make an impact on the proceedings of the central thought process is very important. We need a good strategy and idea to understand the position of the firm. Strategies can help us to understand the external environment and look for the changes to be required in order make an impact…
Author : kara97
Soft Drink Industry Analysis essay example
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